Why Should I Use a Broker?

We’ve all asked ourselves why should we pay a broker to get us a mortgage when the bank can arrange it for free. Below we go over what you’re really getting for your money when you use a broker.

Larger and more diverse range of products

Most advisors have access to thousands of products within their sourcing systems, and usually they will source you a product before any fees are payable. By visiting a bank, you would only be checking your eligibility and rates with one bank, not to mention direct bank appointments can be lengthy. If you don’t meet the banks eligibility criteria, you’d have to commit to a whole new appointment with another bank making this very time consuming.

Access to lenders

The mortgage market has changed significantly in the last two decades, with many non-bank status lenders now operating in the market who don’t accept applications directly from consumers. Many of these lenders operate in the “specialist” segment of the market. By using a broker, you would have access to plenty more lenders who only accept applications from mortgage advisors.

Qualifications and Regulations

Many banking reforms have taken place in the last two decades putting consumer rights at the heart of these changes. Most mortgage advisors will be regulated directly or indirectly by the Financial Conduct Authority. They're heavily regulated compared to many years ago and lenders require the advisor to be CeMap qualified. This has had positive outcomes for consumers as an overall.

Client’s needs and requirements are at the heart of any advice received from a Broker.

Also the “Financial Services Compensation Scheme” or FSCS Reform from 2001 has enabled millions of customers to receive compensation from unsuitable advice where the consumer has lost money or distress has been caused. This means you can be confident in knowing you’re protected by regulation and also have consumer rights for any redress.

Specialist Advice

Most banks and building societies can be considered “vanilla” lenders, meaning if your circumstances are very generic, they may be able to lend. If you have fairly specialist requirements such as being a portfolio landlord or even having issues with credit, high street lenders may not be your best course of action. Your advisor will be able to assist you with advice regarding to your circumstances and they will have access to those specialist lenders who aren’t on the high-street.

Paperwork

Lenders can have onerous document requirements which might terrify you. As mortgage advisors liaise with lenders regarding plenty of different documents, they will be on hand to assist you if you’re not sure what you’re looking at.

Transparency and Fees

We mentioned the positive outcomes of regulation in the mortgage market, one priority of regulation was to ensure customers fully understand the product and fees payable. This happens before any fees are paid to either the adviser or the lender. So you can stay confident knowing you’re not missing anything important.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Some buy to let mortgages are not regulated by the Financial Conduct Authority